i dont know much about economics, but this just seems like a really, really, REALLY bad idea.
It's not a terrible idea, but it might operate better if it were a kind of oil price stabiliser, so the cheaper oil gets the higher the tax, and as prices go up the levy decreases. Still, like >>1078719 says, the republicans in congress won't pass anything proposed by Obama. Anything. It doesn't matter if he suggested doing away with taxes altogether, they'd still block it.
An increase in demand destruction for oil would be bad for drivers, oil producers, and others, but probably good for encouraging necessary/likely adaptations and transformations (especially when combined with "innovation" programs).
The change from owning personal vehicles to companies providing automated "smart car" services is a step toward the future of mobility. Longer term, this sort of transformation means things like... adapting to using fossil fuels at a decreasing rate (w/algorithms working to find efficient carpools and routes), controlling travel, and the erosion of entitlement to cars... setting them up to gradually become elite-only (in a less energy rich world) under the guise of "progress" and "green".
>Democrats are literally Republicans
Wtf I thought Obama knew money was the root of all evil GAS THE 1%
I think this is a great idea. If we cut revenues from the east, they will be stupid not to raise their prices on oil, subsequently helping our economy on top of our gains from the tax.
tl;dr suh dude
It wouldn't be so much about the economic prospects. Obama is trying to implement a more environmentally stable transport system with this tax. Move away from oil. But yes it would also fuck the Middle East up royally.
oil barrel =/= gasoline
We are already taxed by the gallon on gasoline. This crude oil tax will not be just for gasoline. It is anything crude oil is used for. Manufacturing plastic, heating oil, asphalt. This tax would be catastrophic, especially to the poor which the left claims they love so dearly.
It's a talking point, nothing more, nothing less. There is less than a 0% chance of this ever passing congress, which sets taxes (not the president). Obama is hoping that talking about it will buy him some support from green groups or something I imagine. The sorts of people who get excited about things like this don't much care about the economic impact of things like this and are generally too politically checked out to notice that it's never going to happen for a variety of reasons beyond "The evil 1% killed my gas tax that would have totally saved a billion baby seals."
No it isn't.
If you increase the price of things people have to pay more to buy it and making poor people pay more for things they must have makes them even poorer.
What were you expecting him to cite? A grade 2 class picture book on how money works?
This sounds like a terrible idea. One of the things that has been driving down the trade deficit has been the increased production of refined products like diesel and plastics. Adding $10 tax to this means not only is every exporter that uses oil as a feedstock screwed, it will only increase of refined products being imported into the country. That trade deficit will just widen again and the us dollar will fall with it.
He would have better luck and sense by raising the gasoline tax
The POTUS is attempting to get oil taxes back from offshore accounts/tax havens. "If I tax you at the well head, I get the money before you hide it offshore...."
They can't do it to Apple so they are doing it to the energy producing industry.
As Pinky and I used to say, "It's all just a big game.."
Cheap oil is helping the People and the economy as a whole. The only ones complaining about cheap oil is the "green" companies that have no demand and continuously depend on government handouts.
This, holy shit
Like how do democrats not understand by now that if you tax the rich more they will just make the poor pay more for it? What, are poor people just gonna stop buying gas for their cars? The ONLY people that are ever hurt by tax increases are the poor, whether or not they are taxed directly.
Proposal is not to tax at the wellhead.
Administration doesn't exactly know where (or how) they are going to levy the tax but confirmed it would not be a wellhead tax. Judging by the answers to questions, they did even less due diligence than normal.